Budget 2024 proposes to cut the customs duty to 6% on Gold and Silver. Moreover, the finance minister has also proposed to reduce customs duty on platinum to 6.4%.
Mahendra Luniya, chairman & founder of Vignaharta Gold said that in FY23, India’s gold imports totaled an estimated Rs 2.8 lakh crore and at a 15% import duty rate, the industry’s customs duty payout is estimated at Rs 42,000 crore, noting that the latest exact data was not available with him.
He said that it could be a significant boost for the industry and immediately bring down the cost of the yellow metal if the government agrees to its demand. “Lower prices could drive higher consumer demand and increased demand would lead to higher sales volumes, ultimately benefiting companies dealing in gold through improved topline and bottomline performance,” Luniya added.
Echoing similar sentiments, expert Amit Goel, co-founder & Chief Global Strategist at Pace 360, said that an import duty cut could boost demand leading to higher revenues and better profit margins.
